Summary
Becton, Dickinson and Company (BDX) filed an 8-K on July 28, 2006, primarily to furnish a press release announcing its third fiscal quarter 2006 financial results. The key takeaway for investors is the company's emphasis on providing non-GAAP financial measures to offer a clearer view of its underlying operational performance. These adjusted measures exclude the impact of foreign currency fluctuations on revenue growth, specific one-time items like insurance settlements and an in-process R&D charge related to the GeneOhm Sciences Inc. acquisition, and certain tax adjustments. Management utilizes these non-GAAP figures internally for performance evaluation and budgeting, and provides them to investors to aid in comparing current performance to prior periods without the distortion of these discrete items. Investors are cautioned, however, that these non-GAAP measures should be considered supplemental to, and not a substitute for, GAAP results, as the excluded items can have a material impact on the reported financial statements.
Key Highlights
- 1BDX is reporting third fiscal quarter 2006 financial results via an 8-K filing dated July 28, 2006.
- 2The company is providing a significant number of non-GAAP financial measures alongside GAAP results.
- 3Key non-GAAP adjustments include excluding foreign exchange impacts on revenue growth.
- 4Selling, Administrative, R&D, and Operating Expenses are presented excluding insurance settlements and an in-process R&D charge from the GeneOhm acquisition.
- 5Income tax expense and effective tax rate are adjusted to exclude insurance settlements and certain prior-year tax reserve reversals or tax law changes.
- 6Earnings per share (EPS) from continuing operations are also presented on a non-GAAP basis, excluding the aforementioned items.
- 7BDX management uses these non-GAAP measures to assess performance and for budgeting, believing they better reflect underlying operational results and comparability.